Luzon economic corridor's growth: Industrial is pivotal

More than 1,000 hectares of new industrial stock to come online New industrial supply, 2025 - 2028

- By Julius Guevara, Senior Director and Head of Capital Markets and Investment Services, and Joey Roi Bondoc, Director and Head of Research

The Philippine industrial sector has been recording sustained growth. National developers are launching new industrial parks in the country's major corridors, central and south Luzon. New manufacturing locators are finding it viable to open factories and lease warehouses in these two industrial corridors, and this is partly supported by the promise of better connectivity.

What's also interesting is that more and more high-value manufacturers continue to locate in central and south Luzon—indicative of improving profiles of industrial locators in Luzon. Colliers Philippines believes that central and south Luzon will likely continue attracting these high-value manufacturers, and this should have a positive spillover impact on the property sector—potentially resulting in the generation of demand drivers for office, residential, retail, and leisure segments.

Driving Philippine Economy

Central and Southern Luzon have always been major growth drivers of the Philippine economy. In 2024, data from the Philippine Statistics Authority (PSA) showed that these regions accounted for a quarter of the country's gross domestic product (GDP). In addition, Central and Southern Luzon are two of the biggest contributors to the Services and Industry sectors in 2024, along with Metro Manila.